GBP/JPY Volatility Continues After US-Japan Intervention

The Pound to Japanese Yen exchange rate (GBP/JPY) has been volatile in recent days, trading near 212.91 after a week of intervention from US and Japan authorities.

This support for the Yen came as the US non-farm payrolls unexpectedly fell by 23,000 in July, pushing US yields lower and reducing expectations of a September Federal Reserve rate hike.

ING expects USD/JPY to remain contained between 155 and 160 following official action, with ING stating that this intervention does not change the fundamentals of a Fed close to hiking and Tokyo running a loose set of monetary and fiscal policies.